BILL NUMBER: SB 98	CHAPTERED  06/08/99

	CHAPTER   36
	FILED WITH SECRETARY OF STATE   JUNE 8, 1999
	APPROVED BY GOVERNOR   JUNE 8, 1999
	PASSED THE ASSEMBLY   JUNE 1, 1999
	PASSED THE SENATE   APRIL 15, 1999
	AMENDED IN SENATE   APRIL 14, 1999
	AMENDED IN SENATE   MARCH 18, 1999

INTRODUCED BY   Senator Alarcon
   (Coauthor:  Senator Kelley)

                        DECEMBER 8, 1998

   An act to amend Sections 40448.5 and 40448.5.1 of the Health and
Safety Code, and to repeal, add, and repeal Section 9250.11 of the
Vehicle Code, relating to vehicles, and declaring the urgency
thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 98, Alarcon.  Vehicles:  fees:  air pollution.
   (1) The Lewis-Presley Air Quality Management Act requires the
South Coast Air Quality Management District to establish a program to
encourage participation in projects to increase the utilization of
clean-burning fuels.
   This bill would require the south coast district to establish an
Office of Technology Advancement to administer the clean-burning
fuels program and to establish an advisory group, as specified, to
make recommendations regarding the program, technology advancement,
and pollution reduction.  The bill would also require the south coast
district, on or before March 1 of each year, to prepare and submit
to the Legislative Analyst and to specified committees of the
Legislature, a report that contains specified information regarding
the program.  By imposing new duties on the south coast district, the
bill would impose a state-mandated local program.
   (2) Existing law, until August 1, 1999, authorizes the south coast
district to impose a $1 fee on the renewal of registration of motor
vehicles in the district, to fund the program.
   This bill would extend that motor vehicle registration fee
authority until January 1, 2005.  The bill would make other
conforming changes.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (4) This bill would declare that it is to take effect immediately
as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 40448.5 of the Health and Safety Code is
amended to read:
   40448.5.  (a) The south coast district shall establish an Office
of Technology Advancement to administer the clean-burning fuels
program established pursuant to this section.  The program shall
encourage projects  that increase the utilization of clean-burning
fuels that reduce public health hazards from air pollution.  The
south coast district shall coordinate the program with the state
board, the State Energy Resources Conservation and Development
Commission, and other appropriate state and federal agencies and
private organizations that are conducting activities to promote the
use of clean-burning fuels.
   (b) After holding at least two public hearings to solicit public
comment on a clean-burning fuels program, the south coast district
shall annually adopt a program of activities for increasing the use
of clean-burning fuels in the transportation and stationary source
sectors.
   (c) The program shall include an identification of potential
funding sources, including, but not limited to, state and federal
funds; private-sector funds; revenues from district permit, variance,
and emission fees; proceeds from district penalty settlements and
judgments; and funds from other sources under the jurisdiction of the
south coast district.
   (d) In developing its program, the south coast district shall
consider promoting projects in the transportation and stationary
source sectors utilizing methanol fuel, fuel cells, liquid petroleum
gas, natural gas, including compressed natural gas, combination
fuels, synthetic fuels, electricity, including electric vehicles, and
other clean-burning fuels.
   (e) When considering which clean fuels projects to promote, the
south coast district shall consider, among other factors, the current
and projected economic costs and availability of fuels, the
cost-effectiveness of emission reductions associated with clean fuels
compared with other pollution control alternatives, the use of new
pollution control technologies in conjunction with traditional fuels
as an alternative means of reducing emissions, potential effects on
public health, ambient air quality, visibility within the region, and
other factors determined to be relevant by the south coast district.

   (f) When implementing clean fuels projects, the south coast
district shall consider limiting the use of clean fuels to specific
seasons, time of day, and locations if those limitations are found by
the district to further the goals of the program.
   (g) The south coast district shall coordinate the clean-burning
fuels program with transportation control measures adopted pursuant
to paragraph (4) of subdivision (b) of Section 40440 to reduce
traffic congestion, air pollution, and motor vehicle fuel
consumption.
  SEC. 2.  Section 40448.5.1 of the Health and Safety Code is amended
to read:
   40448.5.1.  (a) Prior to adopting the program specified in
subdivision (b) of Section 40448.5 and prior to expending any funds
for any research, development, or demonstration program or project
relating to vehicles or vehicle fuels, the south coast district shall
do both of the following:
   (1) Adopt and include in the program a plan describing any
proposed expenditure that sets forth the expected costs and
qualitative as well as quantitative benefits of the proposed program
or project.
   (2) Find that the proposed program and projects funded as part of
the program will not duplicate any other past or present program or
project funded by the state board, the State Energy Resources
Conservation and Development Commission, an air quality management
district or air pollution control district, a public transit district
or authority within the geographic jurisdiction of the south coast
district, the San Diego Transit Corporation, the North County Transit
District, the Sacramento Regional Transit District, the
Alameda-Contra Costa Transit District, the San Francisco Bay Area
Rapid Transit District, the Santa Barbara Metropolitan Transit
District, the Los Angeles Department of Water and Power, the
Sacramento Municipal Utility District, the Pacific Gas and Electric
Company, the Southern California Gas Company, the Southern California
Edison Company, the San Diego Gas and Electric Company, or the
Office of Mobile Sources within the Environmental Protection Agency.
This paragraph is not intended to prevent funding for programs or
projects jointly funded with another public or private agency where
there is no duplication.
   (b) (1) The Office of Technology Advancement shall provide notice
to interested parties and the public at least 30 days prior to the
annual public hearing at which the south coast district board or a
committee of the board takes action to approve the clean-burning
fuels program.
   (2) For the purpose of this subdivision, "interested parties"
includes groups involved in research, development, and application of
clean fuels technologies; public health and environmental
organizations with expertise in air pollution related diseases and
alternative energy technologies; relevant media; legislators, members
of the county board of supervisors, and members of any city council
that represent territory within the south coast district; and any
member of the general public who has expressed interest in the
program.
   (c) (1) The south coast district shall establish an advisory group
to make recommendations to the south coast district board regarding
the clean-burning fuels program, technology advancement, and
pollution reduction.  The advisory group shall make recommendations
regarding the most cost-effective projects that advance and implement
clean fuels technology and improve public health.
   (2) The advisory group shall consist of 13 members with expertise
in either clean fuels technology and policy or public health, or
both.  The members shall be appointed from scientific, academic,
entrepreneurial, environmental, and public health communities.
   (3) The members of the advisory group shall adopt
conflict-of-interest guidelines that prohibit a member from
advocating an expenditure involving a project in which the member has
a professional or an economic interest.
   (4) The south coast district shall consult with the advisory group
regarding approval of the annual report required by subdivision (d).
  The results of that consultation shall be provided to the south
coast district board prior to its approval of the report.
   (d) Notwithstanding Section 7550.5 of the Government Code, on or
before March 31 of each year that the clean-burning fuels program is
in operation, the south coast district shall prepare and submit to
the office of the Legislative Analyst and to the committees of the
Legislature responsible for improving air quality a report that, at a
minimum, includes all of the following:
   (1) A description of the core technologies that the south coast
district considers critical to ensure the attainment and maintenance
of national and state ambient air quality standards and a description
of the efforts made to overcome barriers to commercialization of
those technologies.
   (2) An analysis of the impact of the south coast district's
clean-burning fuels program on the private sector and on research,
development, and commercialization efforts by major automobile and
energy firms, as determined by the district.
   (3) A description of clean-burning fuels projects funded by the
south coast district, including a list of recipients, subcontractors,
cofunders, and matching state or federal funds, and a description of
expected and actual results of each project in advancing and
implementing clean fuels technology and improving public health.
   (4) The title and purpose of all projects undertaken pursuant to
the clean-burning fuels program, the names of the contractors and
subcontractors involved in each project, and the amount of money
expended for each project.
   (5) A summary of the actual progress made toward the goals of the
clean-burning fuels program.
   (6) Funding priorities identified for the next fiscal year and
relevant audit information for previous, current, and future fiscal
years covered by the report.
   (e) Within 120 days from the date of the conclusion of a program
or project subject to subdivision (a) that is funded by the south
coast district, the south coast district shall issue a public report
that sets forth the actual costs of the program or project, the
results achieved and how they compare with expected costs and
benefits determined pursuant to paragraph (1) of subdivision (a), and
any problems that were encountered by the program or project.
   (f) Notwithstanding any other provision of law, the south coast
district may recover the costs of implementing this section from the
revenues it receives for alternative fuel research, development, and
demonstration pursuant to Section 9250.11 of the Vehicle Code.
  SEC. 3.  Section 9250.11 of the Vehicle Code is repealed.
  SEC. 4.  Section 9250.11 is added to the Vehicle Code, to read:
   9250.11.  (a) In addition to any other fees specified in this code
and the Revenue and Taxation Code, a fee of one dollar ($1) may be
imposed by the South Coast Air Quality Management District and shall
be paid to the department, upon renewal of registration of any motor
vehicle subject to Part 5 (commencing with Section 43000) of Division
26 of the Health and Safety Code and registered in the south coast
district, except any vehicle that is expressly exempted under this
code from the payment of registration fees.
   (b) Prior to imposing fees pursuant to this section, the south
coast district board shall approve the imposition of the fees through
the adoption of a resolution by both a majority of the district
board and a majority of the district board who are elected officials.
  After deducting all costs incurred pursuant to this section, the
department shall distribute the additional fees collected pursuant to
subdivision (a) to the south coast district, which shall use the
fees to reduce air pollution from motor vehicles through
implementation of Sections 40448.5 and 40448.5.1 of the Health and
Safety Code.
   (c) Any memorandum of understanding reached between the district
and a county prior to the imposition of a one dollar ($1) fee by a
county shall remain in effect and govern the allocation of the funds
generated in that county by that fee.
   (d) The South Coast Air Quality Management District shall adopt
accounting procedures to ensure that revenues from motor vehicle
registration fees are not commingled with other program revenues.
   (e) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
  SEC. 6.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to help ensure that continuity of the Clean Fuels Program
of the South Coast Air Quality Management District is maintained, it
is necessary that this act take effect immediately.
